We hear it all the time! 

What's the minimum credit score for an FHA loan?

The answer is it depends on who you ask. All the major banks Wells Fargo, Bank of America, Chase, Citigroup, etc. have minimum FICO score requirements. This means that all the major banks Wells Fargo, Bank of America, Chase, Citigroup, etc. banks make the rules for for loans they will approve.

Because the banks make the rules for loans they will approve they may require a minimum FICO score of 640. These guidelines are the banks guidelines! When you apply for an FHA loan at a major bank and they tell you their minimum FICO score requirement. It does not mean it's FHA's requirements. It means that the are the bank requirements.

On January 20, 2010 FHA announced a policy change to address risk and strengthen finances. FHA changed the minimum FICO scores for new borrowers.

• New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%
• This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well
• This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer

In the old days, FHA did not have a minimum credit score requirement. FHA makes the rules for loans they will insure. As of January 19, 2013 the minimum credit score for an FHA loan is 500.

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